How Boeing Secured the Thai Airways Order for 45 Boeing 787-9s

In February 2024, Thai Airways International finalized a firm order for 45 Boeing 787-9 Dreamliners, with options for an additional 35 aircraft, potentially expanding the deal to 80 jets. This significant order, announced at the Singapore Airshow, was a critical step in Thai Airways’ fleet modernization and expansion strategy as it emerged from bankruptcy-protected restructuring. Below is an analysis of how Boeing secured this order.

Airbus’ Challenge in Competitive Bidding

Thai Airways initially engaged in negotiations with both Boeing and Airbus for a significant widebody aircraft order, potentially involving up to 90 planes. The order was expected to include models such as Airbus A330s, A350s, and Boeing 777s, and 787s, with plans to divide the purchase between the two manufacturers.

Airbus’ Engine Pricing Dispute: Airbus’ bid was undermined by a pricing dispute with its engine supplier, Rolls-Royce, which powers the A350 with Trent XWB engines. Thai Airways, already operating Rolls-Royce-powered A350s and A330s, faced stalled renegotiations over an existing service agreement. Rolls-Royce’s new CEO, Tufan Erginbilgic, adopted a hardline stance, refusing deep discounts, which frustrated Thai Airways.

Boeing enhanced its competitive edge by equipping the 787-9 with GE Aerospace’s GEnx engines, renowned for their superior fuel efficiency and reduced environmental impact. This strategic decision supports Thai Airways’ objective of achieving carbon neutrality by 2050. The GEnx engines provided Boeing with an advantage as Thai Airways aimed to diversify its 787 fleet, moving away from its current dependence on Rolls-Royce engines.

Boeing’s Strategic Alignment with Thai Airways’ Goals

Thai Airways is focusing on fleet modernization and expansion to address the rising travel demand in Southeast Asia. The airline plans to replace its aging and expiring leased aircraft, such as the Boeing 777-200ERs and A330-300s, while expanding its fleet to 96 jets by 2033. Without this expansion, the fleet would decrease to 51 aircraft by 2033, which would be insufficient to achieve the projected annual revenue of 180 billion baht ($4.98 billion) from 2025. The 787-9’s fuel efficiency, range, and capacity align perfectly with Thai Airways’ long-term strategy to open new routes and enhance regional connectivity.

Fleet Simplification: Thai Airways historically operated small, inconsistent sub-fleets (e.g., only two 787-9s before the order), leading to inefficiencies and frequent aircraft swaps. The large 787-9 order allowed for greater fleet consistency, reducing maintenance and operational complexity.

Sustainability Goals: The 787-9’s advanced technology and GEnx engines supported Thai Airways’ commitment to carbon neutrality, a key factor in the decision. CEO Chai Eamsiri emphasized this alignment in public statements.

Boeing’s Long-Standing Relationship with Thai Airways

Historical Partnership: Boeing has been a partner to Thai Airways since 1960, supplying over 75 aircraft, including DC-10s, MD-11s, 737s, 747s, 777s, and 787s. Thai Airways was a launch customer for the 777 and the first Southeast Asian airline to operate it, fostering trust.

Existing Boeing Fleet: As of April 2025, Thai Airways operates over 50 Boeing aircraft, including 777-200ERs, 777-300ERs, 787-8s, and 787-9s. This familiarity with Boeing’s systems, maintenance, and training infrastructure likely favored Boeing over Airbus, despite Thai’s significant Airbus A350 and A320 fleets.

Maintenance Support: Thai Airways benefits from Boeing’s Maintenance Performance Toolbox and Airplane Health Management (AHM) system, implemented since 2007 for its 777s and 787s and expanded to non-Boeing fleets in 2018. This integrated support likely reinforced Boeing’s position.

Boeing’s Sales Momentum and Pricing Flexibility

Market Dynamics: The 787 program has been a commercial success, with Boeing reporting it as the highest-selling widebody family. Facing production quality issues and competition from Airbus’ A350, Boeing likely offered competitive pricing to secure the deal, especially after a $52 billion Emirates order in 2023.

Order Timing: The deal was finalized in December 2023 but listed as an “unidentified customer” order for 45 787-9s on Boeing’s backlog, suggesting negotiations were advanced before the public announcement. This timing coincided with Boeing’s need to bolster customer confidence amid 737 MAX issues, making the Thai order a strategic win.

Options for Flexibility: The inclusion of options for 35 additional aircraft, switchable to 787-10s or 777Xs, provided Thai Airways with flexibility to adapt to future market demands, particularly in high-traffic Asian markets. This sweetened the deal.

External Factors and Market Conditions

Post-Pandemic Travel Boom: Thailand’s tourism recovery and Bangkok’s role as a transit hub drove demand for widebody aircraft. Thai Airways needed efficient jets to capitalize on this, and the 787-9’s range and capacity were well-suited.

Airbus’ Production Constraints: Reports indicated concerns about Airbus and Boeing’s ability to ramp up output. Boeing’s 787 production, despite past quality issues in South Carolina, was perceived as more available than Airbus’ A350 slots, which faced supply chain pressures.

Geopolitical Neutrality: Unlike some orders influenced by political factors, Thai Airways’ decision appeared driven by commercial and operational considerations, with no evidence of government interference.

Announcement and Publicity

• Singapore Airshow: The order was formally unveiled at the Singapore Airshow on February 20, 2024, maximizing visibility. Boeing’s announcement emphasized the 787-9’s role in Thai Airways’ growth and sustainability goals, reinforcing the strategic fit.
• Social Media Buzz: Posts on X from aviation outlets like @airwaysmagazine and @b777xlovers highlighted the order’s significance, noting the 787-9’s role and the option to switch to 777Xs, amplifying Boeing’s win.

While Boeing’s win was a combination of competitive pricing, engine supplier dynamics, and alignment with Thai Airways’ needs, it’s worth noting potential risks:

• Rolls-Royce Dependency: Thai Airways’ pivot to GE engines reduces reliance on Rolls-Royce but introduces new maintenance and training costs for GEnx engines, which could offset savings if not managed well.
• Boeing’s Quality Concerns: Boeing’s 787 production has faced quality control issues, with production halts in South Carolina. Thai Airways’ confidence in Boeing suggests trust in improvements, but delays could impact the 2027 delivery schedule.
• Airbus’ Loss: Airbus’ exclusion from the order, despite Thai’s A350 fleet, highlights Rolls-Royce’s pricing strategy as a critical factor. However, Thai Airways’ lease of 18 Airbus A321neos in 2024 shows Airbus remains a partner, potentially for future narrowbody orders.

Boeing secured the Thai Airways order through a combination of Airbus’ engine pricing dispute with Rolls-Royce, the 787-9’s alignment with Thai’s modernization and sustainability goals, a long-standing partnership, and competitive deal terms. The GEnx engines, fleet consistency benefits, and Boeing’s sales momentum tipped the scales, with the order finalized in December 2023 and announced in February 2024. This deal not only strengthens Thai Airways’ fleet but also boosts Boeing’s position in the competitive widebody market.